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State the Objective of Preparing ‘Cash Flow Statement’. - Accountancy

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State the objective of preparing ‘Cash Flow statement’.

State any two objectives of preparing Cash Flow Statement

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Solution

The main objectives of preparing Cash Flow Statement are as follows.

(i) Measuring inflows of cash and outflows of cash annually arising from operating activities, investing activities and financial activities.

(ii) It helps the management to prepare its cash planning for the future.

Concept: Concept of Cash Flow Statement
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